- PayPal delivered strong Q1 results, with $7.7 billion in revenue and $1.40 of non-GAAP EPS.
- The market is warming up to PayPal, with shares increasing by 37% since October 2023.
- PayPal faces risks such as regulatory compliance, competition, and cybersecurity threats, but its leadership and growth potential are promising.
PayPal Holdings (NASDAQ:PYPL) delivered a top and bottom line beat with their Q1 2024 earnings as they generated $7.7 billion in revenue and $1.40 of non-GAAP EPS. I have been bullish on PYPL since the end of 2022, as I have felt it was one of the most undervalued companies in the market. As a shareholder, I was quite unhappy after last quarter’s conference call as I felt PYPL’s newly appointed CEO, Alex Chriss, missed the mark with his commentary, which overshadowed its Q4 earnings report. The market seems to be warming up to PYPL as shares are hovering around $69 after the earnings beat, which is an increase of around 37% since bottoming in October 2023. I think Alex Chriss did an exceptional job on the conference call and instilled confidence in PYPL’s ability to build off the Q1 2024 results. As a shareholder who was on the fence after the previous quarter, I must admit that my perception of senior leadership has completely changed, and I think the market will reward PYPL shares going forward. PYPL is a cash cow that continues to grow its top and bottom lines while allocating billions to buybacks on an ongoing basis. Alex Chriss and his team delivered first-class results while you could feel the conviction in his voice during the earnings call. I believe that PYPL is massively undervalued, and I am convinced that Alex Chriss and the team he has assembled can forge a new path forward and change the street’s sentiment on PYPL.
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